Why Is Company Culture Important — and How Can You Improve Yours?
If you’re in HR, chances are the organization sees you as an important guardian of company culture. Culture is something boards and the C-suite talk a lot more about – and for good reason. Researchers consistently find that a strong, positive organizational culture is the key to better business outcomes and profitability.
With stakes that high, being accountable for company culture can be a little scary. Company culture is important, but sometimes hard to define – never mind diagnose and measure. But however you define it, experts agree that company culture is an important strategic asset – and a disconnected culture is a major risk.
For HR professionals, organizational leaders, and managers, that means understanding and nurturing this aspect of the workplace is not just essential; it’s a game-changer. But what is it, really – and how can you best measure and manage it?
What Is Company Culture?
Company culture represents the collective values, beliefs, attitudes, and behaviors that characterize an organization. Put colloquially, it’s the “vibe” that permeates every level of a company, influencing everything from day-to-day operations to long-term strategic decisions.
As the heartbeat of an organization, culture also sets the tone for how employees interact, how work is done, and how the company presents itself to the outside world. That makes it critical not only to your employee value proposition, but also to your employer and consumer brand.
At Enboarder®, we understand that culture is often a direct reflection of how people are connected to each other at your company – what we collectively value, how we behave as a team, and how we feel about our colleagues. And it matters, a lot.
Why Company Culture Matters for Employee Engagement – and More
So why is company culture important? Understanding the role it plays in employee engagement, performance, and talent acquisition is important to shaping a successful and resilient organization.
Fostering a Sense of Belonging
A strong company culture cultivates a sense of belonging among employees. This feeling of being part of something greater than themselves can significantly boost morale and job satisfaction. At Enboarder we see how inviting and including employees in culture creation makes every team member feel valued and connected, which in turn, reduces turnover and burnout.
Enhancing Performance and Productivity
When employees are aligned with company culture, they are more likely to be engaged and motivated. This alignment not only enhances individual performance, but also elevates the overall productivity of the organization.
Attracting and Retaining Top Talent
In this competitive job market, a vibrant company culture is a magnet for talent. Prospective employees are often drawn to organizations that share their values and offer a positive work environment.
Tips for Building an Inclusive Company Culture
Creating an inclusive company culture is pivotal in shaping a workplace where every employee feels valued, respected, and empowered to contribute their best. Here are a few ideas on where to start.
Connect Workers to One Another on a Personal Level
Research consistently proves the importance of work friendship to employee experience and engagement. Year over year, for example, Gallup has shown that having a best friend at work is strongly linked to business outcomes like profitability, innovation, safety, inventory control, retention, and fun. Our own recent research found that 94% of employees are more productive when they feel connected to their colleagues. Introduce workers with information around interests and spark friendships and personal connections.
Recognize and Celebrate Diverse Perspectives
Diversity in thoughts, backgrounds, and experiences will enrich your culture of connection. Elevating employee voice through two-way feedback channels and recognizing and celebrating this diversity will foster an inclusive environment where every employee feels valued.
Implement Fair and Equitable HR Policies
Fairness and equity are the cornerstones of a positive company culture. Consistent HR policies and communication help ensure equal treatment and opportunities for all employees – regardless of who their manager is – and reinforce trust and respect within the organization.
Encourage Open Dialogue and Feedback
A culture that values open communication empowers employees to raise their voices and share their ideas and feedback. This openness improves processes and strategies and makes employees feel valued and involved.
Provide Equal Opportunities for Growth and Development
Offering equitable access to training, development programs, and career advancement opportunities ensures that all employees have the chance to grow and excel within the company.
Integrate Inclusivity into Company Mission and Values
Inclusivity should be more than just a policy. Recognizing workers as individuals should be woven into the very fabric of the company’s mission and values. This integration ensures that inclusivity is a living, breathing part of the organization’s culture.
Companies Building Culture: Real World Examples
Wondering how building human connection looks in real companies? Many companies have successfully nurtured their cultures using innovative strategies to connect people. Being intentional with cultural initiatives can lead to remarkable improvements in employee satisfaction and engagement. Here are just a few examples from our customer stories:.
- Dermalogica intentionally welcomes new starters into the Dermalogica culture, and brings its culture to life by creating “wow, intrigue, and excitement” moments – that have resulted in a 35% increase in positive engagement.
- Motorpoint integrates new hires by assigning them a buddy, a human connection that is essential for creating a sense of belonging to the Motorpoint culture – which has resulted in an 89% preboarding engagement rate.
- TomTom uses Enboarder not only in onboarding, but for L&D, internal moves, offboarding, and reboarding programs in a way that resonates and takes the burden off managers – and resulted in a 200% increase in manager engagement.
Company Culture as a Recruitment and Retention Tool
The importance of company culture cannot be overstated. It’s not just a feel-good factor; it’s a critical element of business strategy that drives performance, attracts talent, and builds a resilient and adaptive organization.
In a workplace where change is sometimes the only constant, a strong, inclusive, and vibrant company culture is your best bet for navigating the challenges and winning and keeping the best of the best.
Enboarder’s approach to employee engagement and culture-building offers a roadmap for organizations looking to strengthen work culture. By prioritizing human connections and creating an environment that resonates with employees, companies can use employee relationship management software to turn company culture into a powerful tool for recruitment and retention.
We hope this has been a helpful overview on why organizational culture is important. Contact us today for a tour of the Enboarder platform.